Reliance Group Shares Tumble as ED Arrests Senior Executive in Alleged Fake Bank Guarantee Case
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Mumbai, India — Shares of Anil Ambani-led Reliance Group companies witnessed a steep fall on Monday, following the Enforcement Directorate’s (ED) arrest of a senior Reliance Power executive in connection with an alleged fake bank guarantee and forged invoicing case.
According to reports, Ashok Kumar Pal, a senior executive at Reliance Power, was arrested by the ED on Saturday after extensive questioning. He was taken into two-day custody and will be produced before a court today.
Stock Market Reaction
The arrest sent shockwaves across the stock market, leading to a sharp decline in Reliance Group shares during intra-day trade.
On the National Stock Exchange (NSE), Reliance Power shares fell as much as 10.5% before closing 5.10% lower at ₹46.10, down ₹2.48.
Reliance Infrastructure also witnessed volatility, slipping 4.5% to ₹231 per share before recovering slightly to close at ₹238 apiece by the end of the trading session.
The decline comes just days after Reliance Power shares surged nearly 15% on October 10, reaching a day’s high of ₹50.75 amid strong trading volumes. Data indicates that nearly 7 crore shares changed hands that day — far higher than the weekly and monthly average of 2 crore shares.
Details of the ED Probe
The Enforcement Directorate is investigating the case under the Prevention of Money Laundering Act (PMLA), focusing on alleged financial irregularities, misuse of funds, and submission of forged documents.
Officials claim that Pal played a central role in diverting company funds and submitting fake bank guarantees worth over ₹68 crore to the Solar Energy Corporation of India (SECI). The guarantees were allegedly used to secure contracts and defraud a public sector undertaking.
The ongoing probe is linked to a money laundering case originating from a Central Bureau of Investigation (CBI) FIR, which accused certain company officials of loan misuse.
Larger Investigation and Regulatory Involvement
This latest arrest follows a major ED crackdown on July 24, when officials conducted searches at 35 locations connected to Reliance Group companies, involving over 50 entities and 25 individuals.
The probe also brings Yes Bank and its former promoters under scrutiny. Investigators suspect that loans worth approximately ₹3,000 crore, disbursed by the bank between 2017 and 2019, were diverted or misused.
According to sources, the ED has gathered information from multiple regulators and institutions — including the National Housing Bank (NHB), Securities and Exchange Board of India (SEBI), National Financial Reporting Authority (NFRA), and Bank of Baroda — to build its case.
Market Analysts React
Analysts suggest that the arrest and ongoing investigation have shaken investor confidence, prompting short-term volatility in Reliance Group stocks. However, they believe the market reaction may stabilize once more clarity emerges from the regulatory side.
Despite recent gains driven by retail interest, Reliance Power and Reliance Infrastructure now face pressure due to regulatory overhang and uncertainty surrounding the probe.
Final Thoughts from TheTrendingPeople.com
The arrest of a senior Reliance Power executive and the subsequent market reaction underscore the growing scrutiny of corporate governance and compliance within India’s energy and infrastructure sectors. While the ED’s probe continues, investors are likely to remain cautious until more details emerge.
The episode serves as a reminder of the importance of transparency and accountability in India’s corporate landscape — especially within large conglomerates where the stakes are high and public trust is vital.